Glendale may pay NHL for more time to find Phoenix Coyotes buyer

The Phoenix Coyotes are expected to stay in Glendale at least one more season, with or without a permanent owner, if the City Council pledges another $25 million to the National Hockey League.

The cash would go to offset team and arena losses.

The council will vote on the pledge Tuesday.

The arrangement eases pressure on Glendale to complete a deal among the city, the NHL and a buyer.

An agreement with Chicago businessman Matthew Hulsizer is still in limbo.

The pledge is the second financial promise in as many years.

Glendale this week paid $25 million it pledged the league a year ago in hopes of keeping the Coyotes in town until a permanent owner was found.

The city paid this year's $25 million from a utilities-repair account.

It's unclear whether that same fund would be used again and when the city would have to pay.

The NHL says the team and arena lost $37 million last season.

Two years ago, the league took control of the Coyotes after the previous owner put the team in bankruptcy, calling it a money-loser. Since then, the NHL and Glendale have sought a new owner to keep the team in the Valley and agree on a lease at the city-owned arena.

Coyotes General Manager Don Maloney said the NHL needs to settle on the team's location for at least another year to schedule games.

"We've run out of time," Maloney said. "A decision had to be made: Will we pack our bags and leave, or (will Glendale) buy more time to get the right deal in place?"

He called it a "positive sign that the NHL is committed to hockey in Arizona."

The NHL has said that if a permanent owner can't be found, it will move the team.

But it has fought for the Coyotes to stay in the Valley.

Glendale wants to keep its main tenant at Jobing.com Arena, which the city paid $180 million to open in 2003.

The city is scheduled to pay off that borrowing in 2033.

City documents released Friday providing background on the new $25 million agreement argued that the city would have to pay someone to run the arena if the team left.

City officials have said it would cost nearly that amount to manage the venue.

If Glendale reaches a deal before the end of next season, the amount of the city's pledge could diminish as a new owner would take on responsibility for team losses.Coyotes fan Heather Schroeder, who spent hot summer afternoons in a courtroom to support her team through bankruptcy, wants a permanent solution.

"It does guarantee another season, which is fantastic news, but I want the deal," she said. "I don't want a Band-Aid."

She's confident that will happen with Hulsizer.

Glendale worked out an arena lease in December with the Chicago businessman that aimed to keep the team in the West Valley suburb for 30 years.

The city agreed to pay Hulsizer $197 million over five years and more down the line, while Hulsizer pledged other revenues to the city.

The plan ground to a halt under scrutiny from a conservative watchdog group, the Goldwater Institute, over concerns the deal put taxpayers at risk and was an illegal subsidy of private business.

Since then, Glendale publicly has pressured Goldwater to back down while it privately has sought to rework the deal. Goldwater officials did not return requests for comment Friday.

Glendale resident George Ferenc, 56, said he doesn't want the city to pay the NHL $25 million if the amount of money the city agrees to pay Hulsizer to buy the team stays the same.

But if the deal changes, he's happy Goldwater got involved to force a restructure.

"They may have saved the city some money," he said.

Mayor Elaine Scruggs and other council members did not return calls for comment.

Councilman Phil Lieberman said he plans to vote for the pledge to the NHL.

"It gives us one more year to hopefully really reach out and find another buyer," said Lieberman, who has been in the minority on the council criticizing the deal with Hulsizer.

There has been no indication the city is talking with potential buyers other than Hulsizer.

Phoenix Coyotes goalie Jason LaBarbera signs hockey sticks at Jobing.com Arena on the day the NHL team packed up following their loss to the Detroit Red Wings in the first round of the Stanley Cup Playoffs.